More FEC stuff... penalties/ potential crimes...
"Trump's lawyer, Michael Cohen, apparently paid Daniels off by setting up a shell corporation called Essential Consultants LLC, apparently for the sole purpose of handling this bribe. Even though Cohen used this method to work outside the campaign itself, Ryan argued, the money "was a payment for the purpose for influencing the 2016 presidential election" and therefore the Trump campaign was required to report it as a campaign expenditure.
Failure to do so could constitute a violation of campaign finance law and could even be a crime, particularly if Trump or his campaign deliberately hid the expenditure from the FEC.
An even more interesting question is where that money came from. As Ryan pointed out, it's not just that failure to report the source itself could constitute a violation of the law.
The donation itself could be illegal, depending upon its source. If Trump paid the hush money directly from his own pocket, that's not illegal candidates have a legal right to spend as much of their own money as they wish running for federal office. But if that money came from the Trump Organization or a third party, that could violate laws preventing corporate donations or donations exceeding strict individual limits to campaigns.
...The Edwards trial ended in one acquittal and mistrials on five other counts, but the whole situation demonstrates that the DOJ, at the very least, does indeed consider hush money paid through outside channels to cover up personal indiscretions as campaign donations. That should make it more difficult for either the FEC or the DOJ to simply brush off the complaint from Common Cause.
The FEC has a legal obligation to vote on whether or not to open an investigation into Trump in response to this complaint. If it fails to open an investigation, Common Cause would then have a legal right to sue. But the hope is that the federal government acts consistently with its approach to the Edwards investigation. If the FEC opens an investigation, all evidence gathered will eventually be made available to the public, so even if Trump faces no legal penalties, the public will potentially find out more about where the $130,000 to pay Daniels off came from."
Trumps porn-star payoff may have been illegal: Will it matter? - Salon.com